Filing taxes can be intimidating, especially for individuals and families with low income. However, Canada’s federal tax system is designed not only to collect taxes but also to deliver benefits and credits to those who need them most. If you’re a low-income Canadian, filing your tax return is essential—not just to stay compliant, but to unlock access to refundable tax credits, social support programs, and financial relief.
Why Filing a Tax Return Is Essential—Even with Low or No Income
Many people mistakenly believe that they don’t need to file a tax return if they didn’t earn much during the year. However, this is not the case. Filing your return ensures you’re eligible for:
- Goods and Services Tax/Harmonized Sales Tax (GST/HST) Credit
- Canada Child Benefit (CCB)
- Canada Workers Benefit (CWB)
- Provincial and territorial benefit programs
- Climate Action Incentive Payments
- Old Age Security (OAS) and Guaranteed Income Supplement (GIS) renewals
Even if you didn’t have taxable income, these refundable benefits are triggered by filing your annual return with the Canada Revenue Agency (CRA).
Free Tax Clinics: The Community Volunteer Income Tax Program (CVITP)
One of the most important resources available to low-income individuals is the Community Volunteer Income Tax Program (CVITP). This program, coordinated by the CRA, offers free tax return preparation through trained volunteers at local clinics across Canada.
Who qualifies?
- Individuals with a modest income (e.g., under $35,000 for individuals, under $45,000 for couples—varies by location)
- Simple tax situations (employment, pension, social assistance, RRSPs, etc.)
How to access: Visit the CRA’s CVITP page to search for clinics near you, including walk-in, drop-off, or virtual options.
Free CRA-Certified Tax Software
The CRA certifies several free software options for taxpayers who want to file online using NETFILE. These include:
- Wealthsimple Tax
- H&R Block Free
- GenuTax Standard
- TurboTax Free
- AdvTax
- StudioTax (free under income threshold)
Most of these offer step-by-step instructions, automatic CRA integration, and easy ways to claim credits you may not know exist.
Automatic Benefits for Low-Income Individuals
Once you file your return, the CRA automatically evaluates your eligibility for many programs:
1. GST/HST Credit
This quarterly payment helps offset the cost of sales tax. The amount depends on your income and family situation. Even if your income is $0, you may qualify.
2. Canada Workers Benefit (CWB)
The CWB is a refundable tax credit for low-income workers. It includes a basic amount and a disability supplement. Filing your return ensures you automatically receive the credit.
3. Canada Child Benefit (CCB)
Parents and guardians receive monthly, tax-free payments to help with the cost of raising children under 18. Filing each year is mandatory to keep receiving the CCB.
4. Climate Action Incentive (CAI)
Available in certain provinces, this credit helps cover carbon pricing costs. It’s automatically paid to you as a quarterly deposit, starting in 2022, once you file your return.
Claiming Deductions and Credits
Even low-income Canadians may qualify for deductions and credits that reduce or eliminate tax liability or increase refund amounts:
- Medical Expense Tax Credit
- Disability Tax Credit (DTC)
- Canada Training Credit
- Student loan interest deduction
- Charitable donations tax credit
- Tuition tax credit
All of these are claimable through certified tax software or with help from CVITP volunteers.
Paper Filing vs. Electronic Filing
Electronic filing through NETFILE is preferred for faster refunds and processing, especially if you register for direct deposit. However, if you prefer, you can still file a paper return, and the CRA provides pre-filled packages upon request.
Request your package by calling 1-855-330-3305 or by visiting the CRA’s “Get a tax package” page.
Registering for CRA MyAccount
Low-income Canadians are encouraged to register for CRA MyAccount—a secure online portal that provides access to:
- Your tax slips (T4, T5, etc.)
- Benefit and credit payment schedules
- Notices of Assessment
- Auto-fill tax returns in compatible software
- Update banking or personal information
Dealing with Late Filing or Missing Years
If you haven’t filed in previous years, you can still file multiple years at once. The CRA allows this and will process back credits if you’re eligible. However, file as soon as possible to avoid benefit interruptions or penalties (if you owe).
CRA Taxpayer Relief Provisions
If you owe taxes but are unable to pay due to financial hardship, the CRA offers the Taxpayer Relief Program. You can request to cancel or waive interest and penalties by submitting Form RC4288.
Always file your return even if you can’t pay—this helps prevent worse consequences and keeps your account in good standing.
Tips for Low-Income Canadians to Maximize Refunds and Benefits
- Use direct deposit for quicker payments
- Keep receipts for eligible deductions (e.g., medical, donations)
- File early to avoid delays in benefits
- Check CRA benefit calculators online to estimate payments
- Call 1-800-959-8281 for personal CRA support
Conclusion
Filing your tax return is not just a civic duty—it’s a vital step toward unlocking crucial financial support for low-income Canadians. From free software to in-person tax clinics and automatic benefit payments, there are ample resources to help you complete and file your return successfully.
Don’t miss out on money that’s rightfully yours. File on time, use available supports, and ensure you receive all the benefits and credits designed to ease your financial burden.
